The operator of Sears department stores and the Kmart discount chain blamed its lackluster sales in part on weakness in the electronics, lawn and garden, and drug categories. Fewer apparel discounts also hurt sales, but helped earnings in the second quarter ended on July 28.

Sears Holdings has closed stores, tightly managed inventory, sold some real estate and spun off assets to become more profitable in recent quarters.

The company spun off its Orchard Supply Hardware Stores unit in December. In February, it announced plans to sell some prime real estate and spin off its Sears Hometown and Outlet businesses and certain hardware stores. In May, it said it would spin off a large chunk of its stake in its struggling Canadian unit.

Sales at U.S. stores open at least a year fell 3.7%, including a 2.9% decline at the company’s namesake department stores and a 4.7% fall at Kmart. Same-store sales at the Canadian arm, Sears Canada, fell 7.1%.

Sears Holdings’ struggles are well-documented. The company’s sales have fallen every year since 2005, when Lampert merged two of America’s iconic retail chains — Kmart and Sears Roebuck and Co — in an US$11-billion deal.

The chain, home to brands such as Craftsman tools and Kenmore appliances, is a victim of the weak economy and its own missteps.

Analysts have said top shareholder and Chairman Lampert had not invested enough in Sears’ retail operations, resulting in dwindling sales. While Lampert has refuted such criticism, a blueprint he laid out in May to boost results included plans to invest millions of dollars in a “Shop Your Way” rewards program and improving the layout and signs in the stores.

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